Welcome back to the Ready for Retirement podcast. Today's question comes from a listener who's wondering

if they should sell $450,000 worth of stock to purchase a vacation rental with potential $60,000

of annual income. It's a big decision with potentially serious financial and lifestyle implications,

so before they trade their stock for real estate, we need to dive into the necessary analysis

to see what

benefits the most in the long run. So I'll come up next on today's episode of Ready for Retirement.

This is another episode of Ready for Retirement. I'm your host, James Cannell, and I'm here

to teach you how to get the most of the life with your money. And now, on to the episode.

Today's question comes from a listener named Jim. Jim says, would it be wise to cash in my long-term

stocks to buy a vacation rental home? It would cost approximately $450,000 with a potential

yearly income of $60,000. Our current combined income is less than $60,000, and are both retired, receiving social security and small pensions. Also, what are the tax implications of selling the stocks? Thank you for any advice. Jim, thank you for your question. I do want to be clear. Anything I ever provide on this

podcast should never be construed as advice. It is just for illustrative purposes only.

But what we can do is take your question, provide some generalities, and provide a framework

of how to potentially think about this so that you can make the right decision for you.

There's always two things that I like to look at. When it comes to purchasing

real estate, number one, I want to ask, is this a good financial investment? And number two,

I want to ask, is this a good personal investment? Because sometimes when someone purchases

a real estate, specifically, if it's something like a second home or vacation home, they often want to know,

is this a good financial investment? And sometimes we'll run the numbers and we'll say, no,

this is a horrible financial investment. But you should do it anyways. I say you should do it anyways

because it would be a wonderful personal investment. Maybe there's a new family tradition you want

to start there. Maybe you're moving closer to

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